The S&P 500 moved higher yesterday, but finished the session in the middle ground of its intraday range. The index has registered quite prominent upper tails in four of the last five sessions and there are indications of considerable resistance in the region above the recent highs at 1390.

The yield on the 30-year Treasury bond has retreated to the lower boundary of the range that has prevailed during the last ten weeks.

The striking hammer candlestick on the gold and silver index (^XAU) chart suggests that the area adjacent to the convergence of all three moving averages is well supported.

TRADE OPPORTUNITIES/SETUPS FOR TUESDAY NOVEMBER 14, 2006

The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.

The cup and handle formation that we outlined for Verisign (VRSN) in yesterday's column gave way to a 3.8% breakout continuation yesterday and further upward progress is to be expected.

Following up on our long recommendation for 51job (JOBS) late last week the stock put in a more than seven percent gain yesterday.

Thermo Electron (TMO) is showing strong reversal patterns and there is evidence of distribution and waning momentum.

QLogic (QLGC) registered a perfect spinning top candlestick pattern that could portend a temporary double top.

Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

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